How to calculate the account return rate

PortfolioAlert · 2026-02-22T09:47:31+00:00

The article discusses the calculation method of securities account returns and proposes using the net asset value method to objectively reflect the account's yield, avoiding distortion caused by fund inflows and outflows. Based on data from 2019 to 2025, the calculated average annual return of the account is 16.76%, while the Shanghai Composite Index's average annual growth rate is 8.44%.

PortfolioAlert

2026-02-22 09:47:31

Abstract generation in progress

There are multiple methods to calculate the return on a securities account, such as simple return and compound return methods. Considering that the account funds involve inflows and outflows, how can the return during the period be objectively reflected and distortion avoided? I use the net asset value (NAV) method, treating the account as a fund, with fund inflows and outflows regarded as subscriptions and redemptions.
Between 2019 and 2025, my account experienced 16 inflows and outflows (some data hidden due to size limitations). By calculating the monthly return using the NAV method, I can plot the account’s monthly net value changes alongside the Shanghai Composite Index trend (setting the initial funds and the Shanghai Index closing at the end of 2018 to 1). Over seven years, the account’s net value increased from 1 to 2.173, with an average annual return of 16.76%. The Shanghai Index rose from 1 to 1.591, with an average annual growth rate of 8.44%.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

2 Likes